Can I Claim Compensation for a Mis‑Sold Product?

Consumers in England and Wales have legal rights when they buy goods or services. Occasionally, things go wrong: a product may not be what was promised, may cause harm, or may be misrepresented at the point of sale. In some cases, this amounts to a mis‑sold product, and you may be entitled to compensation or other remedies.

This article explains what “mis‑sold” means in law, what rights you have, how to pursue compensation, relevant time limits, and practical steps you can consider.

What Does “Mis‑Sold Product” Mean?

A mis‑sold product is one that:

• Was marketed or presented in a misleading way,
• Did not perform as promised,
• Was not fit for purpose,
• Was not as described by the seller or manufacturer,
• Or caused unexpected harm.

Mis‑selling can arise in different legal contexts. Importantly, there are distinct types of claims:

1. Contractual claims under consumer law where the goods were not as described, not fit for purpose or of unsatisfactory quality.
2. Product liability claims where a defective product causes personal injury or property damage.
3. Complaints about unfair selling practices, including misleading representations that induced you to buy something you otherwise would not have bought.

What applies in your situation depends on the nature of the problem. One type of claim does not automatically apply to every scenario. The law and remedies vary accordingly.

Consumer Rights When a Product Is Mis‑Sold

Contractual Rights under the Consumer Rights Act 2015

When you buy a product from a business, a contract arises. Under the Consumer Rights Act 2015:

• Goods must be as described, of satisfactory quality, and fit for purpose.
• If they are not, you are entitled to a repair, replacement, refund or price reduction depending on timing and circumstances.

These rights are contractual. They apply against the retailer (the seller), not necessarily the manufacturer.

Examples:

• A product advertised as having features it does not have.
• A device that stops functioning immediately due to poor workmanship.
• A service connected to a product that was in reality never provided as promised.

If the seller refuses to honour your rights, you can escalate the matter (see below).

Misrepresentation and Unfair Practices

If you were given false or misleading information before buying, this may amount to misrepresentation or a prohibited practice under the Consumer Protection from Unfair Trading Regulations 2008. In such cases, you may have a right to redress, including compensation, where the misleading information induced you into the contract.

This includes misleading online claims and other prohibited practices that influenced your buying decision.

When You Can Claim Compensation

“Compensation” can mean different things depending on the situation:

Contractual Remedies

Under the Consumer Rights Act:

• You can demand a refund, repair or replacement.
• If the defect causes financial loss beyond the cost of the item itself, you may be able to recover that loss, particularly if the seller is in breach of contract.

For example, if you bought a kitchen appliance that failed and caused other damage in your home, you could seek compensation for the additional loss, not just the price of the appliance.

Product Liability (Defective Products Causing Harm)

If a product is defective and causes injury or damage, the Consumer Protection Act 1987 gives you the right to claim compensation.

Key points:

• This law operates on strict liability: you do not need to prove the producer was negligent; you must show the defect caused harm.
• You can claim compensation for personal injury, property damage or other losses directly caused by the defective product.

Strict liability claims are against the producer of the product, which can include manufacturers, importers and, in some cases, retailers.

Financial and Credit‑Related Mis‑Selling

Some mis‑selling scenarios involve financial products or credit deals, rather than ordinary goods. These are regulated separately:

• Where financial products (e.g. loans, credit agreements, insurance) have been mis‑sold, the Financial Conduct Authority (FCA) framework and the Financial Ombudsman Service (FOS) may apply.
• If a financial product was unsuitable, inadequately explained, or sold unfairly, you can complain to the provider and, if unresolved, to the FOS.

Recent high‑profile schemes, such as compensation for mis‑sold car finance agreements, show that substantial redress may be available where financial services have been sold unfairly.

How to Make a Claim: Practical Steps

1. Gather Evidence

Start by collecting:

• Receipts, contracts and invoices.
• Emails, screenshots or advertisements that influenced the sale.
• Correspondence with the seller.
• Photos or expert assessments if relevant (e.g. defective product causing harm).

Strong evidence supports your claim.

2. Contact the Seller

Write to the retailer or supplier, clearly stating:

• What went wrong.
• Why you believe the product was mis‑sold.
• What remedy you seek (refund, repair, compensation).

Be specific and include deadlines for a response.

3. Follow the Provider's Complaints Procedure

Most reputable businesses have a formal complaints process. Follow this first, as many disputes can be resolved at this stage without escalation.

4. Escalate the Dispute

If the seller refuses or fails to respond:

• For consumer goods and services, you can consider alternative dispute resolution (ADR) or a claim in the county court.
• For financial products, you can complain to the Financial Ombudsman Service if the provider's final response letter permits.

5. Consider Legal Action

If informal and ADR routes fail, you may pursue a claim in court:

• For contractual claims, small claims procedures are available up to certain financial limits.
• For defective product claims involving injury, more formal court proceedings may be required.

Legal action should be considered carefully, as it involves time and cost.

Time Limits for Claims

Time limits (“limitation periods”) are strict:

• Under the Consumer Rights Act and contractual claims, you generally have six years from the breach of contract to bring a claim in England and Wales.
• Under the Consumer Protection Act 1987, you must bring a defective product claim within three years of discovering the damage, and no more than 10 years from when the product was first put into circulation.

If you miss these time limits, your right to claim may expire.

Common Questions

Q: Can I get compensation for distress or inconvenience?
Yes. In some cases, particularly in financial mis‑selling complaints, the Ombudsman can award an amount for undue distress or inconvenience experienced as a result of the mis‑sale or poor complaint handling.

Q: Does “mis‑sold” always mean the same as “faulty”?
Not always. “Faulty” refers to defects, whereas “mis‑sold” often relates to how the product was marketed, described, or sold. Both can overlap, but they are distinct legal concepts.

Q: Can I use a credit card provider to claim under Section 75?
If you used a credit card to pay for goods or services costing more than £100 and less than £30,000, Section 75 of the Consumer Credit Act 1974 could make the card issuer jointly liable where there was misrepresentation or breach of contract. This may strengthen your claim.

Key Takeaways

You may be able to claim compensation for a mis‑sold product in England and Wales if the goods:

• Were misrepresented at the point of sale,
• Were not as described or fit for purpose,
• Caused injury or damage due to a defect,
• Or were sold with unfair and misleading practices.

Your rights typically begin with contractual remedies such as refunds or replacements. In cases of harm caused by defective products, strict liability under the Consumer Protection Act 1987 may apply. Time limits are crucial. Early action, careful documentation, and following the seller's complaints process are practical first steps. If necessary, consider escalation to formal dispute resolution or court proceedings.